Minnesota Ag Sued Encore’s Midland For Filing Robo-signed Affidavits

by San Antonio Attorney

Encore Capital Group Inc, a leading debt buyer and collector in the U.S., has been accused by Minessota Attorney General of practicing robo-signing in debt collection, an illegal procedure which critics believe to be corrupting the foreclosures of homes.

A prior ruling in connection to a class-action settlement did not get in the way of the Minessota Attorney General Lori Swanson’s lawsuit against Midland. The lawsuit was filed in a Hinnepin County District Court.

She is suing Midland Funding LLC and Midland Credit Management Inc for filing of robo-signed affidavits in court to collect debts which people do not really owe.

Brandon Black, the Chief Executive of Encore, said that this practice started in 2009 and that the company did not believe that it was illegal. He also believed that suing is the only method which works in a lot of collection cases because most of the consumers merely disregard the company letters.

By the end of the year, San Diego’s Encore Capital Group Inc. (ECPG ) bought a total amount of $54.7 billion credit card debts for $1.76 billion.

According to the lawsuit Swanson filed, Midland workers testified that they have been signing up to 400 affidavits each day without reading them or verifying whether or not a debt was owed.

In addition, the Midland units are not only uncertain of the debt but also insistently make the people they are collecting from prove that they are not actually indebted.

Midland units are being sued in order to stop all their unacceptable practices, for contempt of court, and to fine them with $25,000 for each violation.

Swanson was allowed to proceed with the lawsuit even though U.S. District Judge David Katz in Ohio issued an order to postpone court hearings that are related to robo-signing claims because the order cannot overrule sovereign entities.

Currently, all the states are conducting an investigation on the improper practices, like robo-signing, in the mortgage industry.

Article sorted under San Antonio Bankruptcy

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